Q : Why should I get prequalified?

A : When you start looking to buy a home, you want to know the amount you can qualify for, the terms of the mortgage and the closing costs. A qualified buyer is an informed buyer. You will save time when looking at homes, your realtor will know the price range of homes you should be looking at and your seller will know you can get a mortgage.

Q : How do I know how much house I can afford?

A : The amount that you can borrow will depend upon your income, credit history, current savings and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time homebuyers to purchase a home with a higher value. Give us a call and we can help you determine exactly how much you can afford.

Q : How do I know which type of mortgage is best for me?

A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. First Keystone Community Bank can help you evaluate your choices and help you make the most appropriate decision.

Q : What documentation will I need when I apply for a mortgage?

A : There are four areas we consider when evaluating your mortgage application: your income, funds you have available for down payment and closing costs, your credit, and the value and condition of the property. To get started we will need the following:

  • Copies of most recent paystubs for one month
  • Copies of W-2's for the last two years and your most recent Federal tax return for one year
  • Copy of 2 years Federal tax returns if you are self employed or have rental income
  • Copy of leases if you own property that is rented.
  • Copy of the most recent bank statements for two months
  • Copy of Investment and/or Retirement Account statements
  • List of credit obligations
  • Copy of the Deed to property
  • Sales agreement if a purchase mortgage request
  • Copy of contracts for home improvements, if applicable
  • Copy of construction contract which should include contractor agreement, specifications and blueprints

Your Mortgage Loan Consultant will review your application to determine if additional documentation is required.

Q : How much cash will I need to purchase a home?

A : The amount of cash to purchase a home depends on your down payment option and closing costs. We can discuss several options for low down payments and closing cost scenarios to work within your budget.

Q : What does my mortgage payment include?

A : For most homeowners, the monthly mortgage payments include three separate items: Principal: Repayment on the amount borrowed Interest: Payment to the lender for the amount borrowed Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature may be optional, in which case the fees will be paid by you directly to the tax collector and property insurance company.